diff --git a/lmdk/README.md b/lmdk/README.md
index 5d8b4b3037c2..874171826189 100644
--- a/lmdk/README.md
+++ b/lmdk/README.md
@@ -5,11 +5,13 @@
 To build dummy loadable library execute:
 
     cd libraries/dummy
-    mkdir build
-    cd build
-    
-    cmake -DRIMAGE_COMMAND="/path/to/rimage" -DSIGNING_KEY="/path/to/signing/key.pem" ..
-    cmake --build .
-
-Here RIMAGE_COMMAND is path to rimage executable binary, SIGNING_KEY is path to
-signing key for rimage.
+    cmake -B build -G <Ninja/Makefile> -DRIMAGE_INSTALL_DIR="path/where/rimage/executable/is" -DSNIGNING_KEY="path/to/key"
+    cd --build build
+
+
+Here RIMAGE_INSTALL_DIR is a path to directory where rimage executable is, SIGNING_KEY is a path to
+signing key for rimage. If RIMAGE_INSTALL_DIR is not provided, rimage will be searched for in the directory
+where SOF project installs it. Dummy module sets up toolchain file in the project file.
+However, in your library you can select toolchain file in the configure step command:
+
+    cmake -B build -G <Ninja/Makefile> --toolchain "../../cmake/xtensa-toolchain.cmake" -DSNIGNING_KEY="path/to/key"
diff --git a/lmdk/cmake/build.cmake b/lmdk/cmake/build.cmake
index f7a26a754498..e3182f596b06 100644
--- a/lmdk/cmake/build.cmake
+++ b/lmdk/cmake/build.cmake
@@ -46,6 +46,20 @@ endforeach()
 set(RIMAGE_OUTPUT_FILE ${PROJECT_NAME}_noextmft)
 set(OUTPUT_FILE ${PROJECT_NAME}.bin)
 
+if(RIMAGE_INSTALL_DIR)
+  cmake_path(ABSOLUTE_PATH RIMAGE_INSTALL_DIR BASE_DIRECTORY ${CMAKE_SOURCE_DIR} NORMALIZE)
+endif()
+
+# Create a hint - rimage may be installed to directory where SOF project installs it
+cmake_path(APPEND SOF_BASE "../build-rimage" OUTPUT_VARIABLE RIMAGE_SOF_INSTALL_DIR)
+cmake_path(NORMAL_PATH RIMAGE_SOF_INSTALL_DIR)
+cmake_path(ABSOLUTE_PATH SIGNING_KEY BASE_DIRECTORY ${CMAKE_SOURCE_DIR} NORMALIZE)
+
+find_program(RIMAGE_COMMAND NAMES rimage
+  PATHS "${RIMAGE_INSTALL_DIR}"
+  HINTS "${RIMAGE_SOF_INSTALL_DIR}"
+  REQUIRED)
+
 add_custom_target(${PROJECT_NAME}_target ALL
 	DEPENDS ${MODULES_LIST}
 	COMMAND ${RIMAGE_COMMAND} -k ${SIGNING_KEY} -f 2.0.0 -b 1 -o ${RIMAGE_OUTPUT_FILE} -c ${TOML} -e ${MODULES_LIST}
diff --git a/lmdk/cmake/config.cmake b/lmdk/cmake/config.cmake
index 2137aad44408..5c7305c05133 100644
--- a/lmdk/cmake/config.cmake
+++ b/lmdk/cmake/config.cmake
@@ -1,11 +1,4 @@
 
-if(NOT DEFINED RIMAGE_COMMAND)
-	message(FATAL_ERROR
-		" Please define RIMAGE_COMMAND: path to rimage executable.\n"
-		" E.g. using cmake -DRIMAGE_COMMAND=/path/rimage command line parameter."
-	)
-endif()
-
 if(NOT DEFINED SIGNING_KEY)
 	message(FATAL_ERROR
 		" Please define SIGNING_KEY: path to signing key for rimage.\n"